The board of Swiss heterojunction cell and module manufacturer Meyer Burger has approved a US$253 million capital raise to fund a buildout of the company’s manufacturing capacity for solar cells and modules to approximately 3GW.
On 28 October, at an Extraordinary General Meeting, Meyer Burger agreed to issue 934,671,850 new registered shares with a par value of CHF0.05 per registered share, raising a total of US$253 million for the company’s expansion plans.
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At the start of October, the Switzerland-headquartered company said it was planning an ordinary capital increase through a rights offering, targeting gross proceeds of up to CHF250 million (US$253 million).
The funds are expected to enable Meyer Burger to expand annual manufacturing capacity for solar cells and solar modules to approximately 3GW.
Meyer Burger shareholders are expected to receive one subscription right for each registered share they hold as of 31 October, after close of trading. The subscription rights start on 1 November and will be transferable and tradable via the envisaged rights trading on SIX Swiss Exchange.
As detailed by PV Tech Premium, Meyer Burger is planning to have 3GW of cell manufacturing capacity in Germany and 1.5GW of module production in both Germany and the US.
The company is also aiming to benefit from policies supporting solar deployment such as the European Union’s REPowerEU programme and the US’s Inflation Reduction Act (IRA).
In Europe, it has led calls for the greater scaling of PV manufacturing on the continent in order to be competitive with other regions and ensure security of supply for its energy transition.
With PV manufacturing support included in the IRA and India aiming to add 65GW of PV module manufacturing capacity through an extended incentive scheme, European players have emphasised the need to support the growth of Europe’s PV manufacturing sector, which is significantly less mature than counterparts in the US, India and, of course, global leader China.
This comes at the same time as demand for European-made PV production equipment jumped by 62% in Q2 2022, with European orders surpassing those from Asian countries for the first time, according to research by engineering industry association VDMA.
Clean energy advisory firm Apricum has urged European countries to build out their own large-scale, vertically integrated solar manufacturing bases geared to produce the latest PV technologies as a means to ensure its transition and bolster its energy independence.
In the US, Meyer Burger secured a long-term supply agreement for up to 5GW of PV modules with D. E. Shaw Renewable Investments (DESRI). That deal will see Meyer Burger supply 3.75 – 5GW of modules between 2024 and 2029 for use in DESRI’s utility-scale solar projects.
The company said the supply agreement with independent power producer DESRI reflects an opportunity for accelerated growth in the US market.
Clarification: this article was updated on 2 November to clarify the size of the raise from Meyer Burger.